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Microcap & Penny Stocks : MTEI - Mountain Energy - No BASHING Allowed -- Ignore unavailable to you. Want to Upgrade?

To: LT who wrote (3930)	6/27/1998 9:20:00 AM
From: Alastair McIntosh	Read Replies (2) \| Respond to of 11684

LT and thread - Under accounting rules, book value of an asset is the purchase price of the asset if acquired in an arms length transaction. If MTEI ever issues an audited balance sheet the land will show up at its purchase price. Fair market value or value to the enterprise can be much different. Investors consider what the value of the asset is to the enterprise when evaluating the company. Hope this helps to clarify the issue.

To: LT who wrote (3930)	6/27/1998 11:45:00 AM
From: LionHeart	Read Replies (1) \| Respond to of 11684

The Corvette to land comparison was an example of it's not what you paid for it but what the worth is. Someone stated MTEI book value is what the land is worth, as of now yes. This means nothing to me, as I await for good reports from Stagg. The Corvette is not worth much to someone who can not drive. The land is not worth as much to someone who can not extract all the resources. Well MTEI can/will extract the resource, hence it being there, thus making the land worth more and deleting "book value" based on what was paid for the surface acres itself. "Fair market value" will show from this +/- current. The current price is only .40, and where it should be prior to breaking ground. LH

To: LT who wrote (3930)	6/27/1998 1:46:00 PM
From: jhild	Respond to of 11684

LT, I am afraid that you miss the point. The whole purpose of valuing things on open market transactions are that the market is made up of all types of these potential buyers. If it is an arms length transaction, then whatever price the market values that land is what it is worth at the time. To someone who has no way to extract those resources the land retains its' value, as land only. To a company who has engaged the use of new technology to capture those resources, from areas here-to-fore thought unrecoverable, the land takes on a much higher "potential" value. This is why the discussion of the $6M transaction that ACI paid for land that contains 23M tons of coal has relevance. They are just such a coal company, capable of extracting value. They bought that property in just such an open market transaction. This kind of "comparable" transaction is a very useful way at arriving value, absent an open market transaction on the property itself.